While starting a holiday-home business can be an exciting venture, there are many factors to consider to make sure that everything runs smoothly and successfully.
As domestic breaks in the UK became more popular on the back of the pandemic and lockdowns, so did the number of holiday homes across England. In fact, the number of holiday lets increased by 40% from 2019 to 2022. Although there is now more demand for holiday homes in popular areas, there is also more competition.
To stand out from the crowd, a holiday-home business must tick all the right boxes for potential guests. Whether you’re looking at renting out a static caravan, lodge or another type of holiday home, our essential tips can help with starting your business.
Research
This type of business is not one into which you should just jump head first. It’s important to research factors such as location, costs, customer demand, management and co-ordination. While destinations such as Cornwall, the Lake District and Dorset might be some of the most popular, prices and rates in these areas are also likely to be higher. They also might be a long distance from your residential property, meaning that managing and visiting your holiday home could be a bit of a challenge.
Management
One of the most important decisions that you will need to make is: who will manage your property? There are management companies or park sites who will take on the work for you, though this will obviously cost more. Managing your holiday let yourself is also an option, depending on the time and resources that you have available. However, this can take a great amount of commitment as you’ll need to be on hand to sort out any issues and greet guests.
Choosing the right protection policy
Letting out a holiday home doesn’t come without some risks, including accidental damage, flood damage, vandalism and public liability. A holiday home insurance policy could provide cover, should the worst happen.
Furnishing
It’s important to furnish your holiday home to appeal to a wide range of customers. Choosing fresh, neutral décor, cosy seating and beds and adding a few home comforts will help to attract a broad spectrum of holidaymakers. Be wary of cheap items which are unlikely to last, meaning that you could end up spending more in the long term by replacing them.
Rules and regulations
If your holiday home is on a purpose-built site, you will probably need to adhere to the park rules, though this will depend on each individual resort. If it’s on private land, you’ll want to decide on your own regulations such as whether you allow pets, groups or young children, if it’s safe to do so. Deciding what you want from your guests is entirely down to you but be mindful of segregating your target audience.
Though there might seem to be a lot to consider, starting a holiday home business can be a lucrative option if you have the time to dedicate to it.